April 29, 2008 4:28:32 PM - The Dow closed lower for the second session of the week Tuesday, as investors geared up for the much-anticipated FOMC announcement scheduled for Wednesday.
There will be several economic reports released tomorrow, including the ADP employment report, advanced GDP for the first quarter and Chicago PMI. At 8:15 am ET, the ADP employment report for April will be made public.
Analysts expect a loss of 60,000 jobs, compared with a meager gain of 8,000 in March. At 8:30 am ET advanced GDP for the first quarter 2008 will be released, giving a more concrete indication of whether or not the U.S. economy is in a recession.
Analysts are looking for a meager growth rate of 0.5 percent, compared with the fourth quarter 2007 growth rate of 0.6 percent. At 9:45 am ET, the Chicago PMI for April will be released. Analysts are expecting the index to shrink to 47.5 from March's 48.2.
Any reading below 50 indicates a contraction in the sector.
Also grabbing attention Wednesday is the FOMC decision on whether or not to change the federal funds rate. The Fed will announce their decision at 2:15 pm ET.
The Federal Reserve has cut the federal funds rate at 6 consecutive meetings, chopping 300 basis points off the rate bringing it from 5.25 percent to 2.25 percent. Investors are looking for the Fed to cut an additional 25 basis points, bringing the rate to a flat 2 percent.
source: © RTTNews.com
